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Damning report finds state agencies wasted millions meant for struggling homeowners

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A damning new report from a federal watchdog shows that 19 state housing finance agencies wasted millions of dollars that should have gone to struggling homeowners as part of the government’s Hardest Hit Fund program.

The report, published Friday by the Office of the Special Inspector General for the Troubled Asset Relief Program, showed that SIGTARP’s investigation found that the all 19 of the state housing finance agencies that participated in the Hardest Hit Fund collectively wasted $3 million on items like barbecues, steak and seafood dinners, gift cards, flowers, gym memberships, employee bonuses, litigation, celebrations, and cars, instead of using the money to help struggling borrowers.

The Hardest Hit Fund was created in 2010 and is designed to help state’s housing finance agencies assist struggling homeowners and help stabilize neighborhoods in many of the nation’s hardest hit communities, as part of TARP.

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